■GREECE
S&P warns over rating
Standard & Poor’s warned on Wednesday that it could further downgrade the nation’s credit rating in the month ahead, citing risks to its growth forecast and public support for its reform measures. The agency said it was maintaining its current rating on long and short-term debt as well as its negative outlook on the country, which is struggling to curb its debt and public deficit. “In our view, a further downgrade of one or two notches is possible within a month,” S&P credit analyst Marko Mrsnik said. A new downgrade could put Greece in a high-risk investment category.
■AUTOMOBILES
Nissan recalling cars
Nissan Motor Co will recall 76,415 cars across 10 models in Japan due to a possible defect that may cause engine failure, a filing with the transport ministry showed. A Nissan spokesman said it would also recall 2,300 cars for the same problem overseas. Suzuki Motor will recall 432,366 units of two mini-car models in Japan, while Daihatsu Motor will recall 60,774 units of four mini-car models in Japan, separate filings said. Two incidents of fire have been reported among the Suzuki models because of a possible defect in air conditioners, while no accident has been reported in the Nissan and Daihatsu vehicles subject to the recall, the filings showed.
■INSURANCE
Aegon back in the black
Aegon NV, the bailed-out Dutch insurer, reported a return to profit in the fourth quarter as a result of gains on investments that previously made losses, a better operating performance and fewer impairments on assets. Net profit was 393 million euros (US$530 million), compared with a loss of 1.18 billion euros in the same period a year ago. In the Americas, where Aegon does more than half its business and owns the Transamerica company, operating profits were 201 million euros, from a loss of 1.17 billion euros in the fourth quarter of 2008.
■INSURANCE
Allianz meets forecast
The German insurance group Allianz yesterday posted a net profit of 4.3 billion euros for last year, in line with forecasts, and said it would raise its dividend to 4.10 euros per share. In the fourth quarter of last year, Allianz recorded a net profit of 1.076 billion euros, slightly below analysts’ expectations. Sales rose by 5.2 percent to 97.4 billion euros for all of last year, of which 23 billion euros came in the final three months of the year. The insurer did not give a detailed outlook for this year owing to “a very volatile market environment,” boss Michael Diekmann said in a statement. He planned, however, to reach an operating profit close to the level of 7.2 billion euros recorded last year.
■CHEMICALS
BASF profits plunge
German chemicals group BASF yesterday underscored sector problems last year, posting a net profit that was less than half its 2008 figure, but said the worst was behind it. It reported a net profit of 1.41 billion euros, down by 51.6 percent from 2008. Sales fell by 19 percent to 50.7 billion euros, BASF said in a statement, while core earnings were off by more than 43 percent at 3.6 billion euros.
■TELECOMS
Deutsche Telekom profits fall
Deutsche Telekom said yesterday that net profit plunged by more than 70 percent last year owing to asset devaluations of more than 2 billion euros. It recorded a profit of 400 million euros, compared with 1.48 billion euros in 2008.
RISK REMAINS: An official said that with the US presidential elections so close, it is unclear if China would hold war games or keep its reaction to angry words The Ministry of National Defense said it was “on alert” as it detected a Chinese aircraft carrier group to Taiwan’s south yesterday amid concerns in Taiwan about the possibility of a new round of Chinese war games. The ministry said in a statement that a Chinese navy group led by the carrier Liaoning had entered waters near the Bashi Channel, which connects the South China Sea and the Pacific Ocean and separates Taiwan from the Philippines. It said the carrier group was expected to enter the Western Pacific. The military is keeping a close watch on developments and “exercising an
FIVE-YEAR WINDOW? A defense institute CEO said a timeline for a potential Chinese invasion was based on expected ‘tough measures’ when Xi Jinping seeks a new term Most Taiwanese are willing to defend the nation against a Chinese attack, but the majority believe Beijing is unlikely to invade within the next five years, a poll showed yesterday. The poll carried out last month was commissioned by the Institute for National Defense and Security Research, a Taipei-based think tank, and released ahead of Double Ten National Day today, when President William Lai (賴清德) is to deliver a speech. China maintains a near-daily military presence around Taiwan and has held three rounds of war games in the past two years. CIA Director William Burns last year said that Chinese President Xi Jinping
REACTION TO LAI: A former US official said William Lai took a step toward stability with his National Day speech and the question was how Beijing would respond US Secretary of State Antony Blinken yesterday warned China against taking any “provocative” action on Taiwan after Beijing’s reaction to President William Lai’s (賴清德) speech on Double Ten National Day on Thursday. Blinken, speaking in Laos after an ASEAN East Asia Summit, called the speech by Lai, in which he vowed to “resist annexation,” a “regular exercise.” “China should not use it in any fashion as a pretext for provocative actions,” Blinken told reporters. “On the contrary, we want to reinforce — and many other countries want to reinforce — the imperative of preserving the status quo, and neither party taking any
President William Lai (賴清德) yesterday said that China has “no right to represent Taiwan,” but stressed that the nation was willing to work with Beijing on issues of mutual interest. “The Republic of China has already put down roots in Taiwan, Penghu, Kinmen and Matsu,” Lai said in his first Double Ten National Day address outside the Presidential Office Building in Taipei. “And the Republic of China and the People’s Republic of China [PRC] are not subordinate to each other.” “The People’s Republic of China has no right to represent Taiwan,” he said at the event marking the 113th National Day of
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